New Zealand to sell Chorus securities worth $671 million (updated)

Chorus

17/12/2025 04:31

Adds comments from the New Zealand government throughout and background

By Lucy Craymer

WELLINGTON, Dec 17 (Reuters) - New Zealand will sell securities worth NZ$1.16 billion ($670.83 million) in telecoms infrastructure provider Chorus CNU.NZ, as the government looks for ways to raise equity for other infrastructure projects.

New Zealand Finance Minister Nicola Willis said in a statement on Wednesday that the securities were not due to be fully repaid until 2036. Still, the funding had served its purpose, so after testing the market, the government has decided to recoup its present value sooner.

"The money raised will be invested in capital projects such as schools, hospitals, and roads," Willis said.

The government purchased both debt and equity securities in 2011 to roll out ultra-fast broadband, which was completed in 2022.

    Chorus said in a separate statement that the securities have a total face value of NZ$1.16 billion ($670.83 million).

On Tuesday, the government released its half-year financial update, which showed it expected the country's deficit to widen further in the current financial year as a weaker economy hits tax revenue. It continues to want to spend on new infrastructure and is seeking ways to do so.

The government does not own ordinary shares in Chorus, but holds a different class of equity that does not provide voting rights.

The statement said the sale of the securities will begin early in 2026 and will be subject to market conditions, investor feedback, and value-for-money considerations. It is scheduled for completion in the second quarter of 2026.

Chorus added that it did not anticipate any material change to the terms and conditions on which the securities were issued as a result of the sale process.

($1 = 1.7301 New Zealand dollars)

 (Reporting by Roshan Thomas in Bengaluru; Editing by Rashmi Aich)

 ((Roshan.Thomas@thomsonreuters.com;))